Flooring Industry News July 2021
Welcome to our news round-up for July 2021 – a great way to keep up to date with all the latest news, views and commentary for the flooring industry and business owners. To keep on top of all the latest industry news why not follow our LinkedIn account – we always post interesting news stories and article links on our page.
Construction Product Availability Statement
The Construction Leadership Council issued a statement on product availability:
‘ The overall product availability picture has not changed this month. Demand both in the UK and globally continues to dramatically outstrip supply and shows few signs of slowing during the seasonally busy summer months.
In the UK, record sales of building materials coupled with strong pre-orders and full pipelines of work are all putting enormous pressure on the supply chain which, in some sectors, has not fully recovered from the impact of Covid. This suggests the unprecedented challenges around a number of key product areas, particularly imported products and materials, will likely persist into the second half of 2021.’
The full statement can be found on the Construction Leadership Council website.
Flooring firm failures halved
The Stocklists reported on post-lockdown business performance for the flooring industry:
‘Booming business amid post-lockdown pent-up demand means that insolvencies in the flooring and furnishing industry are running at half their normal rate.
95 companies from across the flooring and furnishing industry were placed into administration, liquidation or subject to winding up orders in the first half of 2021 — down from 186 in the first six months of last year.’
The full report can be found on the Stocklists website.
Headlam back to 2019 trading levels
The Stocklists reported on one of the UK’s leading leading flooring distributors recent business performance
‘Leading UK flooring distributor Headlam says sales are back to 2019 levels and has reassured customers on stock levels.
Revenues are up 46% compared to pandemic-affected 2020 and the plc group said in a trading statement today: “The residential sector has continued to be strong, and the commercial sector is continuing to recoup its earlier weakness. Despite documented industry supply issues, the Company has maintained its inventory position, which currently stands at approximately £117 million.” ‘
The full article can be found on the Stocklists website.
Outline transition plan for the Building Safety Bill
The Government published the Building Safety Bill which outlines significant changes to building safety regulation:
‘The Housing Communities and Local Government Select Committee recommended that the government publish with the Bill a clear timetable for commencement, so it is clear by when the industry has to demonstrate compliance and the Building Safety Regulator establish the regime.
The government welcomes the Committee’s recommendation to provide clarity to industry about what is required by when. The Building Safety Bill was introduced into Parliament on 30 June 2021 and as a large and complex Bill we do not expect passage to take less than 9 months.’
Full details are available on the UK Government website.
Flooring outpaces inflation rise
More news about post-lockdown demand in the flooring industry:
‘Price inflation in flooring is almost three times higher than the general surge in retail prices, with sustained strength led by consumer demand.
While general price inflation rose to 2.5% in June, the highest level in almost three years, carpet and flooring has surged ahead to 6.9% according to the latest data fro the Office for National Statistics (ONS).’
Read the full report on the Stocklists website.
Confidences builds for big-ticket purchases
Another report about growing consumer demand and confidence following the Covid lockdowns:
‘ The consumer confidence index for major purchases including flooring turned positive for the first time since the pandemic started this month, reaching its highest level since February 2020.
Retail analysts at GfK reported a seven-point swing in its big-ticket index, to a score of +2 – a fourth straight month of improvement. The GfK Major Purchases Index asks consumers if now is the right time to purchase high-value items such as cars, furniture or white goods.’
Read the full article on The Stocklists website.
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